Sony Will Not Sell PlayStation 4 at Major Loss - Company

Sony Does Not Plan Major Losses for Its PlayStation 4 Launch

by Anton Shilov
05/09/2013 | 10:09 PM

All video game consoles are sold at a loss early in their lifecycles, which causes substantial losses for the platform holders. Even though Sony Corp.’s PlayStation 3 was the most expensive video game system ever at launch, Sony sold it at a massive loss, which seriously affected its financial results. However, with the PlayStation 4 the company does not expect major losses to occur.

 

"At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip. [For the PS4] we have a team working on chip development, but we already have existing technology to incorporate and also product investment, and all the facilities will now be invested by our partners, other foundries, so we do not have to make all the investment in-house," said Masaru Kato, chief financial officer of Sony, during a conference call with financial analysts, reports Gamasutra web-site.

Sony’s chief financial officer did not say that the company will sell PlayStation 4 with a profit, or completely without losses. Therefore, it is possible that Sony will not make profit by selling the hardware, but its losses will not be as dramatic as those with the PlayStation 3.

Sony PlayStation 4 is based on a semi-custom AMD Fusion system-on-chip that integrates eight AMD x86 Jaguar cores, custom AMD Radeon HD core with unified array of 18 AMD GCN-like compute units (1152 stream processors which collectively generate 1.84TFLOPS of computer power that can freely be applied to graphics, simulation tasks, or some mixture of the two), various special-purpose hardware blocks as well as multi-channel GDDR5 memory controller. The PS4 will come with 8GB of unified GDDR5 memory sub-system (with 176GB/s bandwidth) for both CPU and GPU as well as large-capacity hard disk drive.

Sony PS4 will be equipped with Blu-ray disc drive capable of reading BDs at 6x and DVDs at 8x speeds, USB 3.0 connectivity in addition to a proprietary aux port, Gigabit Ethernet port, 802.11b/g/n Wi-Fi, Bluetooth 2.1 EDR wireless technology as well as HDMI, optical and analog outputs. The new system will also utilize new DualShock 4 game controller with integrated touchpad as well as better motion sensing thanks to new PS4 Eye tracking cameras.

Sony PlayStation 4 is expected to hit the market later in 2013.